Audio tech company DTS intends to acquire iBiquity Digital for approximately $172 million.
The companies say the deal makes sense for both of them as DTS’ global licensing platform combines with HD Radio technology for geographic and market expansion opportunities in the car, home and mobile devices.
DTS expects to finance the transaction through a combination of cash on hand and debt.
In particular, DTS notes iBiquity’s efforts surrounding HD Radio’s penetration in the North American automotive OEM market, notably that 36% major auto brands selling in the U.S. offer HD Radio receivers on some of their model lines, some as standard equipment. DTS expects that trend to continue.
DTS Chair/CEO Jon Kirchner says iBiquity is “strongly positioned to capitalize on broadcast radio’s ongoing digital upgrade.”
Kirchner continues: “This transaction extends our strategy of delivering a personalized, immersive and compelling experience across the network-connected entertainment value chain, and complements our existing suite of technology and content delivery solutions while enabling us to strengthen our position in the large automotive OEM market. Consumers have come to expect a higher quality sound experience in their car, and we believe there is a tremendous opportunity for DTS to capitalize on the upgrade to HD Radio technology as cars are increasingly equipped with screens and advanced entertainment systems.”
iBiquity President/CEO Bob Struble, who will continue to lead the HD Radio business for DTS, calls DTS “a like-minded partner” and iBiquity looks forward to bringing HD Radio technology to the DTS portfolio.
iBiquity’s customers and employees will benefit from the additional scale and enhanced resources of the larger DTS, he said.
The companies predict the deal will close later in the year, subject to customary closing conditions.
